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May 13, 2021, 05:40:09 PM |
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Im a few weeks deep into crypto at this point.
But i'm unclear on some things, if anyone has any general info.
When a coin is traded for another coin, its my understanding that in the USA thats a taxable event (i guess added to income 1099 maybe but not capital gains related), though this part eludes me, if nothing is cashed out how is it added to income exactly?
Do exchanges automatically provide these type of trades, coins for coins as statements so that its not needed to be tracked? (IE: end of year or month etc) In my case i have been using cashapp, kucoin, coinbasepro, robinhood, bittrex, and kracken
So what i've done so far is try to make an excel spreadsheet with all these moves, but tracking the exact specifics especially after say 3-5 are done at a time becomes a nightmare and trying to determine what i should be putting in the spreadsheet (coin for coin exchanges).
Now on the financial software side (quicken), i decided to add each exchange where things are deposited as a brokerage account and just show the deposits there (but not the securities). I guess i figure since i have all the securities in coinstats i dont need to track that in quicken, just the money going to and from the bank account.
Its my understanding if i hold currency a year or more its long term capital gains tax, vs before that short term. Whats unclear on that is if you build up a crypto over the year and then decide to cash out part of it, how do you know if some of it was a year a go and some 6 months which part you just took out cap gains wise, long vs short?
Just wondering if im on the right path or any other tips?
Thanks in advance
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